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Voluntary retirement compensation and chargeability to tax if payment is stretched over a period of years
Case Law Details
- Case Name
- ITO Vs Dhan Sai Srivas (Chhattisgarh High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
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SUMMARY OF CASE LAW
Benefit in lieu of salary payable to an employee opting for voluntary retirement is exempted from being charged to tax to the extent of Rs. 5 lakhs by reason of section 10(10C); even if the payment is stretched over a period of years, the same would not become chargeable to tax in any subsequent assessment year.
RELEVANT PARAGRAPH
Section 10 (10C) of the Act was inserted in order to make voluntary retirement attractive so as to reduce human complements for securing economic viability of certain companies. It was intended to make voluntary retirement more at...
